Zepto co-founder and CEO Aadit Palicha recently described the three-year-old quick commerce platform as “a hyperlocal Walmart for a hyperlocal India” during an event in Delhi. He expressed confidence that Zepto would surpass D-Mart in terms of sales within the next 18 to 24 months.
“We see ourselves as a hyperlocal Walmart for a hyperlocal India, which has been a key factor in our growth and profitability. In commerce, no one has successfully built a scalable hyperlocal platform with a high-quality customer experience. Most commerce in India operates on a hyperlocal basis. Our significant product-market fit stems from being the first platform to combine the proximity advantage with the structural benefits of a large-scale retailer, such as pricing, sourcing leverage, selection, and quality control,” Palicha explained.
He further highlighted that the Indian grocery and household essentials market was valued at $650 billion in FY 2023 and is projected to grow to $850 billion by FY29.
“If you aim to create a business larger than Amazon or Flipkart, grocery is the key category. It surpasses the combined size of all categories served by Amazon and Flipkart, including electronics, apparel, and furniture. Grocery and household essentials are the largest market segments,” Palicha said.
Palicha emphasized Zepto’s focus on the top 40 cities in India, which represent a substantial market opportunity. “Every pincode in India has a grocery store, but the top 40 cities account for $400 billion of the $850 billion market. The top 50-70 million households contribute $200 billion. If we execute well, we can realistically grow our business from over Rs 10,000 crore in revenue today to Rs 2.5 lakh crore over the next five years in these top cities. Our focus is not on the next 100 cities,” he stated.
Zepto recently closed a $665 million funding round, raising the company’s valuation to $3.6 billion. This investment comes less than a year after the Mumbai-based firm secured $235 million from investors, achieving unicorn status with a $1.4 billion valuation.
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